This invention is generally related to presentation instruments, such as credit cards, debit cards, stored value cards and the like. More specifically, the invention is related to such presentation instruments that are provided with protective devices or other schemes to prevent the fraudulent use or activation of such presentation instruments.
The use of presentation instruments to access financial accounts is well known. Examples of such presentation instruments include credit cards, debit cards, ATM cards, phone cards, so-called gift cards, and the like. Such cards typically contain an account number in some form or another that permits the card holder to gain access to their account, such as when making a purchase.
One common way to store the account information is through the use of a magnetic stripe that extends lengthwise along the card. To read the card, a point of sale device, such as the one described in copending U.S. application Ser. No. 10/116,689, filed Apr. 3, 2002, incorporated herein by reference, may be used. The account identifier that is read from the card may then be electronically transmitted to a processing system in order to complete the transaction.
Another way to store the account information is by using a bar code that is read using a bar code reader. Other forms of storage devices include smart chips, RFID tags, MICR lines, and the like.
One problem experienced when using presentation instruments is that they are susceptible to fraud. Integral to fraudulent activity is the ability of the criminal to access account information from the storage device, such as from the magnetic stripe. For instance, those inclined to criminal activity may attempt to duplicate a lost or stolen card, or simply to produce fraudulent cards from blank stock or other cards having a magnetic strip.
Hence, there is a need to insure that a presentation instrument has not been tampered with or duplicated prior to performing a transaction, such as when activating an account.